ANNEX

IPA II 2014 ANNUAL PROGRAMME FOR REPUBLIC OF MACEDONIA

1Identification

Beneficiary / Republic of Macedonia
CRIS/ABACCommitment references
Total cost
EU Contribution
Budget lines / 2014/037-701
2014/037-706
EUR40,665,414.67
EUR21,176,471.00
EUR 34,717,811.25
EUR 18,000,000.00
22.02 01 01
22.02 01 02
Management Mode/
Entrusted entities /
  1. Direct management by the European Commission for Action 1
  2. Indirect management with Republic of Macedonia for Actions 3 and 4.
The Operating Structure responsible for the execution of these actions is the Central Financing and Contracting Department in the Ministry of Finance (CFCD) upon Conferral of Management Powers.
In case of Action 2 “Participation in Union Programmes”, implementation will consist in the payment of the IPA part of the financial contribution to the programmes by the National Fund.
  1. Indirect management by the entrusted entities listed below: The World Bank (with fall back option UNDP) for Action 6.

Final datefor concluding
Financing Agreementswith the IPA IIbeneficiary / At the latest by 31 December 2015
Final date for concluding
delegation agreements under indirect management / At the latest by 31 December 2015
Final date for concluding
procurement and grant contracts / 3 years following the date of conclusion of the Financing Agreement,
with the exception of the cases listed under Article 189(2) Financial Regulation
Final date for operational implementation / 6 years following the date of conclusion of the Financing Agreement.
Final date for implementing the Financing Agreement
(date by which thisprogrammeshould be de-committed and closed) / 12 years following the conclusion of the Financing Agreement.
Programming Unit / DG Enlargement, Unit B2 "the
Republic of Macedonia"
Implementing Unit/ EU Delegation / EU Delegation to the Republic of Macedonia

2Description of theAction Programme

2.1Sectors selected under this Action Programme

  • Rationale for the selectionof thespecific sectors under this programme:

With the aim of concentrating IPA II financial assistance on limited number of key priorities, the proposed Annual Action Programme covers three sectors identified in the indicative country strategy paper for 2014-2020 (CSP): democracy and governance;rule of law and fundamental rights; competitiveness and innovation.

Thedemocracy and governance sector will be addressed through two actions, EU Integration Facility and Participation in Union Programmes. Sector selection has been agreed upon with the national authorities on the basis of the priorities set in the CSP for Republic of Macedonia.The key objective is building up capacity for further developing the sector approach in selected sectors, preparing project pipelines,supporting EU acquis alignment,and financing studies and other short-term assistance.

The sector rule of law and fundamental rights will be addressed through three actions: "Support for Justice Sector","Home Affairs: Implementation of business continuity and disaster recovery system" and "Home Affairs: Further development of the capacities for crime scene investigation". Financial assistance will contribute to improvingthe independence, efficiency, accountability, professionalism and competence of the judiciary and prosecution with a view to ensuringa more accessible justice system, more efficient and fair criminal investigation, prosecution and trial andmore efficient and effective criminal system. Assistance will further focus on the fight against organised crime, through improvedcapacities for forensic expertise. Furthermore, the establishment of Business Continuity and Disaster recovery centre will be supported as a follow-up of a project started under IPA I.

Finally, the sectorcompetitiveness and innovationwill be addressed through oneaction in the area of local and regional competitiveness.The main objective of the action in this sector is to improve economic competitiveness of the country's regions and municipalities and to stimulate job creation. The action will focus on enhancing local competitiveness andintegrated local development including through unlocking economic potential in the tourism sector.

  • Overview of past and on-going EU, other donors' and/or IPA II beneficiary's actions in the relevant sectors:

The country has been implementing IPA financial assistance under decentralised management (DIS) since 2009. It has been repeatedly recognised that national authorities need to uphold their efforts with respect to addressing systemic problems and increasing the absorption of IPA funds under DIS at all levels, in order to tackle the procurement backlog accumulated under IPA I.Past experience in implementing EU funded projects across all sectors has showntheneed for improving the quality of project management through enhanced capacity building and improved coordinationof project activities with relevant stakeholders.Assistance needs to be sequenced appropriately and the quality of project outputs needs to improve to achieve greater impact and visibility.

Further efforts will be needed to strengthen coordination and coherence amongst the key stakeholders and donors to ensure an efficient framework for sector support. Lack of stakeholder consultation and coordination mechanisms at the national administration level has been recognised as one of the weaknesses of implementing the sector wide approach in the country. A comprehensive donor coordination platform will need to be fully established despite relatively small number of donors active in the country. There is a need for greater transparency and information sharing to ensure that sector policy priorities are addressed effectively and in a coordinated manner with all relevant donors.

List of Actionsforeseen under the selected Sectors/Priorities:

Sector 1: Democracy and Governance

Indirect Management
with the IPA II beneficiary / Other implementation arrangements
(Direct Management by EU Delegation)
n/a / 1. EU Integration Facility / EUR 8,000,000.00
2. Participation in the Union Programmes / EUR 6,717,811.25 / n/a
TOTAL / EUR 6,717,811.25 / TOTAL / EUR 8,000,000.00

Sector 2: Rule of Law and Fundamental Rights

Indirect Management
with the IPA II beneficiary / Other implementation arrangements
3. Justice Sector Support / EUR 13,000,000.00 / n/a
4. Home Affairs: Implementation of business continuity and disaster recovery system-phase 2 / EUR 5,950,000.00 / n/a
5. Home Affairs:Further development of the capacities for crime scene investigation / EUR 1,050,000.00 / n/a
TOTAL / EUR 20,000,000.00 / TOTAL / EUR 0.00

Sector 6: Competitiveness and Innovation

Indirect Management
with the IPA II beneficiary / Other implementation arrangements
(Indirect Management Delegation Agreement)
n/a / 6. Local and Regional Competitiveness / EUR18,000,000
TOTAL / EUR 0.00 / TOTAL / EUR18,000,000

2.2Description and Implementation of the Actions

SECTOR 1 / Democracy and Governance / EUR 14,717,811.25
Action 1 / EU Integration Facility / EUR 8,000,000.00

(1) Description of the Action, objective, expected results and key performance indicators

The main objective of this Action is to strengthen technical and administrative capacity of the administration in relation to the European integration process and to support effective and efficient management and absorption of EU pre-accession funds.The track record of financial assistance implementation in the country shows that further improvements are needed. One of the major challenges that the administration is facing is lack of mature projects, backlogs in procurement, timely contracting and utilisation of programmed IPA funds. Building the necessary capacity to improve strategic planning, project cycle management, project preparation, carrying out proper needs assessment,ensuring reliable statistics, developing mature sector programmes and project pipeline for investment and institutional/capacity building activities remain a priority.

This action will help addressing these system weaknesses byprovidingsmall scale technical assistance on preparation, implementation and monitoring of the projects programmed under the IPA National Programmeswith a view to maximising the use of pre-accession funds and to improve its effectiveness and impact. The Actionis designed to provide flexiblesupport to small scale capacity building projects that cannot be channelled through alternative instruments, such as TAIEX.

The assistance under this action should result in improved alignment with and enforcement of the acquis and in moreefficient and effective programming and implementation of pre-accession financial assistance. Achievement of this result will be measured mainly against the following key performance indicators:progress in terms of percentage of committed funds; improved capacity of the administration to programme and implement financial assistance; gradual introduction of the sector based approach.

(2) Assumptionsand conditions

EU integration remains a government priority - continuous commitment of the beneficiary to EU accession and provision of sufficient resources to support management of EU programmes/actions. It is further essential that national authorities remain committed to establishing a full-fledged sector approach to IPA II assistance. This entails in particular drawing up relevant National Sector Strategies; development and regular update of relevant strategic documents such as sector oriented actions and sector planning documents; development of sector benchmarks roadmap.

(3) Implementation arrangements of the actions:Direct management by the EU Delegation

(4) Essential elements of the action (for direct management)

The objective of the European Integration Facility is to provide flexible support to the national authorities by addressing specific needs identified in the course of alignment with and enforcement of the acquis,implementation of IPA I and IPA II assistance, preparing projects pipeline for future funding, also with a view to reinforce the institutional capacity for the management of IPA funds and sector based approach.The expected results are:

  • Appropriate administrative structures, capacities and management systems deriving i.a. from the acquis communautaire are in place for number of areas;
  • Efficient and effective programming, management and implementation and monitoring of pre-accession assistance.

Depending on the needs related to the EU integration process, the Action will be implemented through a number of Twinning/Twinning light/service/framework/grant contracts as well as direct agreements where the need for a rapid response of the Commission to non-programmable events is such that the duration of the procedure to amend this decision would frustrate the purpose of such response.Supply and works contracts may be considered in highly exceptional cases. Activities financed under this Action will be mostly demand driven. The type of contracts cannot be determined at this stage due to the flexibility of this Action, allowing for direct and fast interventions.

a) The global budgetary envelope reserved for procurement and grants: EUR 8 million

b) The indicative number and type of contract award procedures:specific contracts under Framework contracts, services, twinning, grants, direct grants. Indicative number of contracts: not greater than 45.

c) Indicative timeframe for launching the procurement (twinning, grant, direct award) procedures: is Q2 2015.

Action 2 / Participation in Union Programmes / EUR6,717,811.25

(1) Description of the Action, objective, expected results and key performance indicators

The Indicative Country Strategy Paper stipulates that financial assistance can be provided through co-financing the country’s participation in relevant Union Programmes and Agencies.The objective of this action is to co-finance the costs of the "entry-tickets" which the beneficiary has to pay for the participation in Union Programmes and Agencies, and, by those means, to facilitate the progressive transfer of know-how and the strengthening of capacities of the relevant administrative bodies benefiting from the participation in Union Programmes and Agencies.

The following results are foreseen:

  • Enhanced participation of Republic of Macedonia in Union Programmes, including increased exchanges with EU Member States;
  • Strengthened ownership and responsibility of Republic of Macedonia (including in financial terms) for participation in Union Programmes;
  • Entry-ticket for participation in EU Programmes paid and contracts signed.

New Union Programmes for 2014-2020 shall be gradually open for the participation of the Western Balkan countries. The beneficiary country has expressed its interest in participating inter alia in the following programmes:

  • Horizon 2020
  • COSME (Programme for competitiveness of enterprises and SMEs)
  • Europe for Citizens
  • Culture – Creative Europe
  • Media – Creative Europe
  • Customs
  • Fiscalis
  • Civil Protection Mechanism
  • Erasmus plus
  • Erasmus plus extended actions
  • Progress
  • LIFE (Instrument for the environment and climate action)
  • Justice , Fundamental Rights and Citizenship
  • Health for Growth Programme
  • Consumer programme
  • Programme for Employment and Social Innovation (EaSI)
  • GMES (European Earth monitoring programme)

Participation in other Union Programmes will be determined at a later stage.

The participation of Republic of Macedonia in Union Programmes shall follow the specific terms and conditions set out for each such a programme in theInternational Agreementto be concluded by the European Commission and the country, in accordance with the agreements establishing the general principles for participation in Union Programmes.

(2) Assumptions and conditions

EU integration remains a government priority - Continuous commitment of the beneficiary to EU accession and provision of sufficient resources to support management of EU programmes/actions. The Accession Partnership, NPAA, Enlargement Strategy and Progress Reports provide adequate guidance for programming activities. Availability and motivation of appropriate staff for cooperation and involvement is essential.

(3) Implementation arrangements of the actions: indirect management with the beneficiary country

Short description of the tasks entrusted to the entity

The participation of Republic of Macedonia in Union Programmes shall follow the specific terms and conditions set out for each such a programme in the International Agreementto be concluded by the European Commission and Republic of Macedonia.

SECTOR 2 / Rule of Law and Fundamental Rights / EUR 20,000,000.00
Action 3 / Justice Sector Programme / EUR 13,000,000.00

(1) Description of the Action, objective, expected results and key performance indicators

The Action derives from the Sector Planning Document for the justice sub-sector, which has been prepared to provide multi-annual strategic framework for prioritisation and proper sequencing of interventions. Assistance under this action will contribute to the improvement of administration of justice and to a more effective planning and implementation of justice sector reforms. More specifically, the action will contribute to improving the independence, efficiency, accountability, professionalism and competence of the judiciary and prosecution, ensure a more accessible justice system, more efficient and fair criminal investigation and prosecution, a more efficient and effective criminal system.Against this background, the results to be achieved under this Action are the following:

  • Improved mechanisms for designing, implementing and monitoring justice sector reforms, strengthened capacities of all justice sector stakeholders in strategic planning and operational EU law implementation; enhanced access to legal aid, improved administrative and misdemeanour law and practice.
  • Improved judiciary governance system, ethical and disciplinary framework, performance management and professional training system, improved courts administration, more consistent and accessible practice of courts.
  • Improved E-justice system, information and communication technologiesinfrastructure (ICT), inter-connection of the Ministry of Justice, Judicial Council, Council of Public Prosecutors, Public Prosecutor’s Offices, courts and other justice sector actors, upgraded E-services, databases and statistics for greater access to justice and higher quality policy making.
  • Improved prosecution governance system, performance management and professional training systems, administration and its management at Public Prosecutor’s Offices, fair and effective implementation of the new Criminal Procedure Law.
  • Improved prison management, detention conditions and reduced reoffending through policy, legislative, institutional and ICT changes in the penitentiary and probation systems and focus on rehabilitation and re-socialisation, increased internal and external oversight mechanisms, enhanced partnerships with civil society organisations.

Results will be measured against objectively verifiable indicators:

  • Degree of implementation of the national justice sector reform policies at the end of Actionimplementation.
  • Level of satisfaction with the state of administration of justice by way of user satisfaction surveys at the end of Action implementation.
  • Assessment of the progress in administration of justice by European Union, other international organisations and NGOs in their reviews and rankings at the end of Action implementation.

(2) Assumptions and conditions

  • The EU integration process remains a government priority - Continued commitment to the EU Accession process.
  • Commitment from national authorities to the justice reform process.
  • Justice sector planning document updated.
  • Sufficient level of implementation of IPA Programmes.
  • Availability and motivation of appropriate staff for cooperation and involvement.
  • Low turnover of staff in the IPA structures.
  • National co-financing available.
  • Commitment for gradual implementation of the sector based approach conditions;
  • Continuous commitment to EU accession and provision of sufficient resources to support management of EU programmes/actions.

Failure to comply with the requirements set out above may lead to a recovery of funds under this programme and/or the re-allocation of future funding.

(3) Implementation arrangements of the action: indirect management by the beneficiary country

Short description of the tasks entrusted to the entity

The accredited structure will be responsible for management, procurement and implementation of the Action in line with the procedures in place. Until full ex-post control, the EU Delegation will provide ex-ante control on all procurement/twinning/grant files. It is the role of the Senior Programming Officer in the Ministry of Justice and the Contracting Authority to ensure proper procurement sequencing and implementation of this Action.

Action 4 / Home Affairs: Implementation of business continuity and disaster recovery system-phase 2 / EUR 5,950,000.00

(1) Description of the Action, objective, expected results and key performance indicators

The Action will support the establishment of disaster recovery and business continuity data centre as part of the critical infrastructure protection at the national and EU levels. Critical infrastructure is an asset or system which is essential for the maintenance of vital societal functions. The direct beneficiary of this action, the Ministry of Interior, has developed the information system for border control intended to be able to be integrated into the Schengen Information System in the future when conditions are met. This border control information system is treated as part of the critical infrastructure for which an adequate level of protection must be ensured. Key elements of the system protection include separate back-up system, incident management system, physical protection of back-up data and emergency plans.

Main expected results of the action are the following:

  • The business continuity and disaster recovery system is fully functional.
  • Measures taken to reduce the effects of system disruptions implemented.
  • Contingency strategies developed.
  • An information system contingency plan developed.
  • Trained personnelatthe Ministry of Interior.

Results will be measured against the following key performance indicators: